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2000M12-GAS TRANSMISSION615152.3 ORDINANCE NO. 00- AN ORDINANCE GRANTING A PERMIT AND CONSENT T GAS TRANSMISSION, TEXAS CORPORATION, PG& TF~NSMISSION TECO, INC., AND PG&E ENERGY T~DII CORPORATION, THEIR WHOLLY OWNED SUB,~ CORPORATIONS AND WHOLLY OWNED SUBSIDIARY G[ AND LIMITED PARTNERSHIPS, AND THEIR SUCCE LESSEES OR ASSIGNS, TO MAINTAIN, USE AND O!: CERTAIN NATURAL GAS AND/OR NATURAL GAS [ TRANSMISSION PIPELINES ALONG, ACROSS, AND PUBLIC PROPERTY AND RIGHTS OF WAY IN THE C SCHERTZ, TEXAS, AND DECLARING AN EMERGENCY BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCH Section 1. Permit and consent granted; consideration. That the City of Schertz, Texas ("the City"), for and in cons of the payment of the "Agreed Settlement Sum" (as defined herein) ~ good and valuable consideration, the receipt and sufficiency of w hereby acknowledged, and subject to the terms and conditions of and Final Release and Settlement Agreement executed and approv~ City contemporaneously herewith and the terms, conditions and d6 set forth herein, hereby grants to Grantee (as defined herein) ape consent for the Term to operate, use and maintain the PG&E System and to exercise the rights and privileges granted by this Or( Section 2. Definitions. (a) For purposes of this Ordinance, "the PG&E Pipeline Syste~ mean the intrastate, interurban natural gas and natural ga~ transmission pipelines and ali their appurtenant facilities, in but not limited to, mains, spurs, laterals, meters, valves, c~ protection systems, city gates, and all other similar faci Grantee, located in, under or along City Rights of Way. Th~ Pipeline System includes ali pipelines and facilities owned, operated and/or controlled, in whole or in part (such as throuc~ venture or partnership, for example), by Grantee. The PG&E System has been disclosed to the City and/or its counsel b OPG&E E GAS ~G-GAS ;IDIARY 'NERAL SSORS, ~ERATE .IQUIDS UNDER ;ITY OF ERTZ, TEXAS' deration nd other hich are the Full ~d by the ,finitions rmit and Pipeline inance. n" shall ~ liquids cluding, )rrosion lities of .~ PG&E leased, h a joint :ipeline ~/maps, written descriptions or by other identification. The PG& Pipeline System is not a "Local Distribution Company" or "LDC" (a defined herein). The consent, permit, rights and privileges gra d by this Ordinance encompass the PG&F: Pipeline System and the o ,erations, lines of business, and business activities of Grantee in the ity; such grants however do not allow the PG&E Pipeline System or a y portion thereof hereafter to be operated, used or maintained as LDC. (b) in this Ordinance, "City Rights of Way" shall mean a y public easement, street, road, avenue, highway, freeway, toll rea<, bridge, alley, boulevard, sidewalk, park, parkway, lane, drive, circ e, canal, sanitary or storm sewer runoff, drainage ditch, dump, landfil or other public property, thoroughfare, way, or place currently wned or controlled by, and/or located within or which may in the ture be constructed within or annexed into the corporate limits of, the City, including all in-City portions of any federal or state highwa , farm to market road, or other right of way designated as part of e Texas state highway system by the Texas Department of Trans ortation, Texas Transportation Commission, State Highway Co ,mission, and/or any predecessor or successor thereof. (c) (d) (e) In this Ordinance, "Grantee" shall mean and shall be unde be PG&E Gas Transmission, Texas Corporation, PG. Transmission Teco, Inc., and PG&E Energy Trading-Gas Cor their wholly owned subsidiary corporations and wholl~ subsidiary general and limited partnerships, and their suc lessees or assigns. In this Ordinance, "Agreed Settlement Sum" shall meat understood to be Grantee's one time, lump sum pay $30,217.32 and all other things of value given to and accept( City as consideration for the Full and Final Release and Se Agreement executed and approved by the City contempors herewith and the rights, permit, and consent granted Ordinance for the Term. In this Ordinance, "Local Distribution Company" or "LD mean a person, corporation, 9eneral or limited partnership, entity that owns one or more lines of pipe within a city serv and holds itself out to both residential and commercial cu generally within such city service area to provide public utilit~ through such line or lines of pipe for a fee. 'stood to ~E Gas }oration, owned cessors, and be 'nent of ~d by the Element ~neously by this 0" shall or other ce area stomers service 615152.3 -2- Section 3. Maintenance, Operation, Repair, Relocation, Expa Removal of PG&E Pipeline System. The consent and permit granted herein includes, without lim rights and privileges to own, maintain, operate, improve, enlarg~ repair, remove, and relocate any part of the PG&E Pipeline Syster be deemed necessary by Grantee. In the event that Grante~ necessary to excavate in any City Rights of Way, Grantee shall City and shall comply with all then existing City and/or other gov¢ requirements, if any, concerning such excavation and work p~ subject to the provisions of this Ordinance and to the extent t requirements are applicable to other pipelines and facilities similarly Grantee shall comply with ordinances of general application. Section 4. New Construction. (a) General. Subject to the provisions of Section 2(a) above limited by Section 4(b) below), should Grantee, during the this Ordinance, desire to construct or install new pipelines or facilities in City Rights of Way, Grantee shall notify the comply with existing City and/or other governmental require any, concerning such construction to the extent applicable pipelines and facilities similarly situated, except that no a payment, other than what is expressly set forth herein, shall during the Term and thereafter such new pipelines or facilil be made subject to the provisions of Sections 6 and 9. In t any new pipeline construction or expansion of an existing causes a cumulative increase of more than 300 linear fee along or under City Rights of Way, then in such event Gran make an additional lump sum payment to the City equal to per linear foot of such new pipeline within City Rights (excluding for purposes of this payment calculation only an portion of the designated state highway system), multiplie. number of years remaining on the Term, reduced to prese using a 6% discount rate. After completion of construc: compliance with existing City and/or other gover requirements, if any, the new pipeline and/or new facilit become a part of the PG&E Pipeline System as defined he covered by this Ordinance. For the purpose of calculating s sum payment obligation, the terms "new pipeline" and "new f do not include any upgrades, replacements, changes in diam~ or configuration, of any part of the existing PG&E Pipeline Further, any relocation of the existing PG&E Pipeline Syster any change in location, expansion or widening of the pay ~nsion or tation, all extend, ~ as may ; finds it ~otify the rnmental rformed, ~at such situated. (and as Term of add new City and ments, if to other dditional be made :ies shall qe event pipeline [ of pipe tee shall 15 cents of Way y in-City d by the nt value ~,ion and 'nmental es shall rein and ny lump acilities" ;ter, size System. n due to ed road 615152.3 -3- (b) surface portion of any City Rights of Way shall not be cons be a "new pipeline" or "new facility" for the purpose of calcul~ lump sum payment obligation. Sothing in this Ordinance sh the rights, if any, of the City to receive any money from ti' Department of Transportation that may, in the future, be col or through the Texas Departmont of Transportation from an the Texas state highway system. Limitations on Future Expansion. Although this Or, grants consent to expand the PG&E Pipeline System, construction or installation of new pipelines or new faciliti~ consent shall be limited by this Section as follows: (i) During the Term, if and only in the event any construction involving new pipelines or new facilities is proposed in any City Rights of Way open to the public but not located along or under a road or other City Right of Way subject to vehicular traffic- such as an airport, public park, municipal building site, or landfill site- the Grantee entity(ies) that owns and/or operates the in-City portion of the PG&E Pipeline System ("Pipeline Owner") will file an application for consent to construct new pipelines or new facilities. In addition, in no event shall the City seek or impose any terms, conditions or consideration in granting the application that are greater or more onerous than those being imposed or received by the City upon or from any other person or entities that are similarly situated to or compete with Pipeline Owner. The City agrees to act on such application in a timely fashion, not to exceed 60 days; and/or (ii) During the Term, if and only in the event that the Pipeline Owner desires to construct or install new pipelines or add new facilities in a manner that would cause the PG&E Pipeline System to cross under or along any additional City Rights of Way, for the purpose of delivering gas directly (it being agreed that direct deliveries of gas shall not include a sale for resale nor a delivery of gas to the LDC or any other third party transporter) to~ any retail gas consumer not served by the dered to ]ting any all effect e Texas ected by / user of inance by the .~s, such 615152.3 -4- Section 5. Pipeline Owner as of the effective date of this Ordinance and located inside the City, the Pipeline Owner agrees to provide notice to the City. To the extent required by this Section 4(b)(ii), the Pipeline Owner will file an application for consent to construct new pipelines or new facilities, such consent not to be unreasonably withheld by the City. In addition, in no event shall the City seek or impose any terms, conditions or consideration in granting the application that are greater or more onerous than those being imposed or received by the City upon or from any other person or entity that is similarly situated to or compete with Pipeline Owner. The City agrees to act on such application in a timely fashion, not to exceed 60 days. Notwithstanding anything to the contrary, this Section 4(b)(ii) shall not apply to the construction or installation of new pipelines or addition of new facilities to deliver gas to existing or new electric power generating plants. Substances. Subject to the terms and conditions of this Ordinance, (a) the substances may be transported and/or delivered for purposes of .~ for resale, transportation or purchase in any part of the PG&F_. System by Grantee' natural gas or natural gas liquids, in gaseous state or the equivalent thereof, whether natural or synthetic ("Subs1 and (b) Grantee may transport and deliver its own Substances, and 1 and/or deliver for hire Substances owned by affiliates, governments and/or third parties. Section 6. Nature And Sufficiency of Consideration. (a) Findings. The money paid to the City and the agreements in Section 4 are sufficient consideration for all purposes (b) Exclusive Charge. The consideration described in Sectior 4 shall be the exclusive compensation, tax (except as pro Subsection (c) below), fee, rental, assessment or other however characterized, payable or due to the City by pertaining to the presence, use, ownership, and/or operatic PG&E Pipeline System, and the natural gas or natural g~ Iollowing ale, sale Pipeline or liquid :ances"); ransport I entities set forth s 1 and ¢ided in charge, Grantee ,n of the s liquid 615152.3 -5- (c) sales, purchases, transportation and other business activiti~ thereto, during the Term of this Ordinance. Grantee's agr( pay such consideration shall be full consideration during the the City's consent and permit for the rights and privileges g this Ordinance and shall be in lieu of all other franchise regulatory, use, sales, gross receipts, or occupation tax assessments, exactions, rentals or charges which may attempted to be levied by the City. Certain Taxes Not Exempt. Nothing herein shall cons exemption to Grantee from (i) ad valorem taxes levied by th real or personal property owned by the Grantee within the C any new tax (includin9 any new increment to an existincj authorized, mandated or imposed by the state or federal 9o~ after the effective date of this Ordinance if such new ta> increment is equally applied to all persons and entities withir that are similarly situated to or compete with Grantee. Section 7. Term. The consent and permit granted by this Ordinance shall conl remain in full force and effect for a period of twenty-five (25) years after its effective date pursuant to Section ~ 5 ("the Term"). Section 8. Expiration of Term; Renewal. if Grantee desires a renewal of this consent and permit, it sh the City at least two (2) years prior to the expiration date of the Te City shall not bo compelled to renew but shall not unreasonably wit rofuse renowal of this consent and pormit./he City shall not requ onerous terms or conditions nor require §mater consideration from for renewal than those then in offect for other persons and entities similarly situated to or compete with Grantee and are using or occup Rights of Way. If the City, acting in good faith and with a reasona[ decides not to ronew this consont and pormit, the City shall [live formal written notice of such decision not later than 18 months be expiration of the Term. After receipt of such notice, Grantee shall h the end of the Term to find a buyer or buyers to acquire all or any parts of the PG&E Pipeline System. For any part of the PG&E System Grantee is unable to sell or convey after expiration of ti~ Grantee shall have a reasonable time after the expiration of such s related ement to Term for 'anted by license, as, fees, evied or titute an 9 City on ity, or (ii) tax) first 'ernment or new the City nue and rom and all notify rm. The hhold or ire more Grantee that are ling City ~le basis Grantee .fore the ~ve until divisible Pipeline e Term, Term to remove from City Rights of Way those parts, and shall restore affelted City Rights of Way to the condition existing before such removal..~ 615152.3 -(~- Section 9. Existing Obligations Affecting The PG&E Pipelin (a) As of the effective date of this Ordinance, there may be contracts, ordinances, easements, leases, agreements o imposing obligations and/or City requirements pertaining to t Pipeline System or Grantee ("Existing Pipeline Facility Obli~. It is the intent of City and Grantee that any such payment c shall be subsumed into Section 6(b) hereof and that this O shall control and supercede any such Existing Pipeline Obligations to the extent they conflict or vary in any manner Ordinance. (b) Grantee and City further agree and declare that' (i) the consideration paid under this Ordinance satisfies full any fee, charge or payment obligation that otherwi~ would be due under Existing Pipeline Facil Obligations after the effective date of this Ordinance (ii) the term, if any, for any such Existing Pipeline Obligations is hereby extended to coincide with the this Ordinance; and Grantee and City shall execute such further docun necessary to conform Existing Pipeline Facility Oblig; this Ordinance. (a) (b) Section 10. Notice. Written Notice. All notices required or sent in accordance Ordinance shall be in writing. Addresses. All notices shall be addressed to the other par address below or at such other address as the receiving p~ subsequently designate by notice to the sending party (i) Notice to the City shall be sent to: City of Schertz, Texas 1400 Schertz Parkway Schertz, Texas 78154 Attn: City Manager e System. existing permits le PG&E lations"). bligation rdinance Facility from this in ;e Facility Term of ents as ~tions to with this ty at the ~rty may 615152.3 -'7- (ii) Notice to Grantee shall be sent to: PG&E Gas Transmission, Texas Corporation and PG&E Gas Transmission Teco, Inc. 1100 Louisiana, Suite 1000 Houston, Texas 77002 Attn: General Counsel Section 11. Satisfaction of Consent and Permit Requirement City acknowledges and agrees that Grantee has satisfied paid all of Grantee's obligations, duties, responsibilities, fees and and liability, if any, including but not limited to any derivative liab regard to all past and present statutory and regulatory consent requ pertaining to use or occupation of any City Rights of Way under an, municipal law or regulation applicable to Grantee, including, b example and not limitation, Texas Revised Civil Statutes art. 117 Local Government Code § 282.003, Texas Transportation Code § Texas Utilities Code §§ 181.006, 181.023 and 181.026, the City Ch Code of Ordinances, if any, and/or any City ordinance, resolution, consent requirement, if any, pertaining or applicable to the PG&E System or Grantee. Section 12. Severability. It is hereby declared to be the intention of the parties that the clauses, sentences, paragraphs, and Sections of this Ordina severable, and, if any phrase, clause, sentence, paragraph, or Secti{ Ordinance shall be declared void, ineffective, or unconstitutional by judgment or final decree of a court of competent jurisdiction or a fin rule or regulation of a §ovemmental re§ulatory authority, such v, ineffectivoness, or unconstitutionality shall not affect any of the re phrases, clauses, sentonces, paragraphs, and soctions of this 0 since the same would have been enacted by the City witt incorporation herein of any such void, ineffective, or unconstitutiona clause, sentence, paragraph, or section. Section 13. Transfer or Assignment. Grantee is expressly given the right, power and privilege convey, transfer, lease, or assign, to any person or entity, Grante~ under this consent and permit, and to sell, convey, transfer, lease, ( ali or any portion of the PG&E Pipeline System. Grantee agrees written notico to the City, within a roasonable time aftorward, of a conveyance, salo, transfer, Ioase, or assi§nment, but failure to provi and fully charges, ility, with rements state or way of 5, Texas :~11.071, arter and ~ermit or Pipeline 3hrases, BCe are )n ofthis the valid al order, 3idness, ,maining 'dinance ~out the phrase, to sell, 's rights r assign to give ny such de such 615152.3 -8- notice shall not constitute a forfeiture of any of Grantee's rights terms and conditions of the Ordinance. The consent, permit, ri privileges granted by this Ordinance encompass the PG&E Pipelin, and the operations, lines of business, and business activities of G the City; but such grants do not allow the PG&E Pipeline Syste portion thereof hereafter to be operated, used or maintained as an such term is defined above). Therefore, absent separate and exp consent and agreement, no such conveyance, sale, transfer, assignment by Grantee, as authorized herein, shall constitute or ( any buyer, transferee, lessee, or assignee the right, power or pr; operate as an LDC within the City. Section 14. Indemnity. Except as expressly provided for below, this Ordinance address or concern, and shall not be construed to have any appli, any future occurrence involving leakage, rupture, fire or explosion any in-City portion of the PG&E Pipeline System which causes or i: to cause any personal injury or property damage. IF AND ONLY EVENT THE CITY IS SUED AS A RESULT OF ANY SUCH OCCUF DURING THE TERM, AND SUBJECT TO THE LANGUA6 CONDITIONS HEREOF, THE PIPELINE OWNER AGREES TO IND AND HOLD HARMLESS THE CITY FROM ANY ADJUDGED L! AND DAMAGES CAUSED BY ANY NEGLIGENT OR WRONGFUL OMISSION OF PIPELINE OWNER RELATING TO THE CONSTRI. MAINTENANCE, OPERATION, OR REPAIR OF THE PG&E P SYSTEM; PROVIDED, HOWEVER, THE CITY SHALL PROMPTLY PIPELINE OWNER IN WRITING OF SUCH CLAIM OR LAWSUI' event that City desires to settle any such claim or suit relating to ar for which indemnification is or will be sought by City hereunder, pri¢ judgment by the court, then this indemnity shall be without leg~ unless the City obtains Pipeline Owner's written consent to such se1 Pipeline Owner shall have the right, but not the obligation, to ass defense of any claim made against the City relating to any matter fl indemnification is orwill be sought hereunder. PIPELINE OWNER A TO BEAR THE COSTS OF DEFENSE IN CIRCUMSTANCES IN PIPELINE OWNER ASSUMES THE DEFENSE. tinder the ghts and 9 System .rantee in m or any LDC (as ress City ease, or :onvey to ivilege to Joes not :ation to, nvolving alleged IN THE ~RENCE ;E AND EMNIFY ~,BILITY ACT OR ICTION, PELINE NOTIFY · In the / matter r to final ~1 effect, tlement. dme the )r which GREES WHICH Section 15. Full and Final Release and Settlement Agreement. The City Council also authorizes the City Manager to execu' and Final Release and Settlement Agreement in substantially t~ attached hereto as Exhibit A and to deliver such Agreemenl appropriate parties. Iea Full ne form to the 615152.3 -9- Section 16. Effective Date and Controlling Effect of this Ordi This Ordinance shall become effective upon the last in t adoption by the City in the form accepted by the Grantee and the in full to the City of the Agreed Settlement Sum. Upon such effec this Ordinance shall constitute a contract between the City and Gr~ shall govern the rights and relationships between the City and G the duration of the Term, and it shall supersede and take preced inconsistent ordinances, resolutions, or regulations hereafter or h passed by the City. Ordinance number 00-./~, -_~ is hereby repea Section 17. Emergency Provision. By vote of not less than two-thirds of the members of the Cit' present at the meeting at which this Ordinance was considered Council has determined that an emergency exists which requires ir action, and this Ordinance is hereby adopted on a single readi Ordinance shall be in force and effect from and after its final pass it is so ordained. nance. me of its payment tive date, ntee and antee for ~nce over eretofore led. ~ Council the City ~mediate ~g. This age, and 615152.3 -]0- READ, CONSIDERED, PASSED and AP_PROVED at a Regular Council of the City of Schertz, on the/~>/day of :---Ju>"£ , 2000, held in a< Open Meetings Act, Texas Gov't Code §551.001 et. seq., at which a quorum v ____~, .. APPROVED by the Mayor of the City of Schertz, Texas, on th ~~¢¢ ,2000. By: C IT/Y~ F SCHERTZ M a'yo rU/~ __'-7--z~,,n ~' ATTEST: City Secretary APP OV D ~ ' · _ City ¢,ttorney 615152.3 -] ]_ vleeting of the City :cordance with the ,as present. s the ~/'-"¢;,;-? day of STATE OF TEXAS COUNTY OF GUADALUPE I, the undersigned City Secretary of the City of Schertz, Texas, hereby ce~ and foregoing is a full, true and correct copy of an ordinance adopted_~y the City at the meeting of such City Council held on the ~;'7/day of _'J ~/~/~ ,2, appears in the official minutes of the City Council of the City. 2000. WITNESS MY HAND AND SEAL of the City of Schertz, Texas, this~:.~-Z,F City Secretary City of Schertz, Texas 615152.3 -]2- 'tify that the above Council of the City ::)00, as the same day of __J~?/Y~ , ECE 'v'EID JUN 0 RAMON GARCIA FELIPE GARCIA, JR. CATHERINE W. SMITH SONIA LOPEZ OSCAR H. LOPEZ ERIC S. JARVIS MICHELE GONZALES VIA' FAX & FIRST CLASS MAlL CITY MAYOR CITY OF SCHERTZ P.O. DRAWER I SCHERTZ, TX 78154-0890 Re~ LAW OFFICE OF A PROFESSIONAL CORPORATION 222 WEST UNIVERSITY EDINBURG, TEXAS 78539 May 30, 2000 Cause No. 96-12-7404-A; City of San Benito vs. PG&E Gas Tr Corporation et al.; In the 107th Judicial District Court of Camer, PRIVILEGED AND CONFIDENTIAI~ INFORMATII Dear City Official' As you are aware, your city is involved in the above class action. Recentljy proper action, approved the full and final settlement agreement by adopting a resoluti the adoption by the city of a consent ordinance. The settlement has been approved [ are awaiting final court approval. Because the release and settlement agreemen approved by your city, we ask that you, as city mayor, sign the release and return th to us. We should have a check ready for your city. However, if you prefer, we will h delivery your check and pick-up the signed release. This will be the final act reques' we would like to take this time to extend our complete appreciation for your pro cooperation. If you have any questions, or if we can provide you with any information reg proposed settlement or any of the documents previously provided to your city and please feel free to contact our offices by calling our office toll free at (877) 387-0771 facsimile at (956) 387-0775; or (3) write to our address, Law Offices ofRamon Garc: Class Action Litigation, 107 N. l0th Street, Edinburg, Texas, 78539. Sincerely, ansmission, Texas an County, Texas. 'TELEPHONE (956) 383-7441 FAX (956) 381-0825 )N your city, through on, which included )y the court and we t already has been .e signed document ave a staff member :ed of your city and mpt and continued arding the case, the your city attorney, ); (2) write to us by ia, P.C., San Benito LJ[W OFFICES OF RAMON GA.RCIA, P.C. _ d "'X---'---- Legal ~Assistant for the San Benito Cla~ AP/hg Enclosures CC' Paul Andrews City Attorney FULL AND FINAL RELEASE AND SETTLEMENT AGREE~/IENT This Full and Final Release and Settlement Agreement is made and enter, day of June, 2000, by and between the City of Schertz, Texas, as a Settling Class ( defined); and (i) PG&E Gas Transmission, Texas Corporation f/k/a Corporation; (ii) PG&E Texas Natural Gas Company f/k/a Vale~ Company; (iii) PG&E Texas Pipeline Company f/k/a Valero Transmis (iv) PG&E Texas Pipeline, L.P. f/k/a Valero Transmission, L.P.; (v) V'! Lo Vaca Gathering Company; (vi) PG&E Texas Field Services Comp Field Services Company; (vii) PG&E Texas Gas Storage Company t Storage Company; (viii) PG&E Hydrocarbons Company f/k/a Valer¢ Company; (ix) PG&E Hydrocarbons, L.P. f/k/a Valero Hydrocarbons Texas Hub Services Company f/k/a Valero Storage and Transfer Com Texas Management Company f/k/a Valero Management Company; Gas Partners, L.P. f/k/a Valero Natural Gas Partners, L.P.; (xii Management Partnership, L.P. f/k/a Valero Management Partner,, PG&E-Tex, L.P. f/k/a Valerotex, L.P.; (xv) PG&E Texas Energy Comp Reata Energy, L.P. f/k/a Reata Industrial Gas, L.P.; (xvii) PG&E Holdings Corporation f/k/a Valero Gas Marketing Company f/k/a Real Company; (xviii) PG&E NGL Marketing, L.P. f/k/a Valero Marketing, Texas LDC, L.P. f/k/a VLDC, L.P.; (xx) PG&E Rivercity Energy, L.F 630312.2 -1- :d into as of the 6th ~ity (as hereinafter Valero Energy · o Natural Gas .sion Company; ' Company f/k/a any f/k/a Valero :/k/a Valero Gas ~ Hydrocarbons , L.P.; (x) PG&E pany; (xi) PG&E (ii) PG&E Texas ) PG&E Texas ;hip, t.P.; (xiv) any; (xvi) PG&E ~nergy Trading :a Industrial Gas L..P.; (xix) PG&E '. f/k/a Rivercity Gas, L.P.; (xxi) PG&E Texas VGM, L.P. f/k/a Valero Gas Marketing, L Texas Industrial Energy, L.P. f/k/a Valero Industrial Gas, L.P.; (xx Texas Pipeline Company f/k/a Valero-Teco West Texas Pipeline Cc PG&E Gas Transmission Teco, Inc. f/k/a PG&E Gas Transrr Corporation and Teco Pipeline Company; (xxv) Teco Gas Gathering C Teco Industrial Gas Company; (xxvii) Teco Gas Marketing Compan! Gas Processing Company; (xxix) Teco Gas Services Company, Energy Trading- Gas Corporation f/k/a PG&E Energy Trading Corporation officers, general and limited panners, joint ventures, employees, and representati, (collectively referred to hereinafter as "PG&E/TECO" or "the Settling Del; WHEREAS, the Cities of San Benito, Primera and Port Isabel initi individual litigants on or about December 27, 1996, and were named as Class R a class of Texas cities certified by Court order on November 5, 1997, as amende( Court order of November 12, 1997, such litigation styled Cause No. 96-12-7412 Benito, et al. v. PG&E Gas Transmission, Texas Corporation, et al.; In th District Court, Cameron County, Texas ("litigation"); and WHEREAS, PG&E/TECO has vigorously defended the litigation and d~ to deny the allegations, claims and damages asserted by the Class Plaintiffs; and WHEREAS, the Class Plaintiffs and PG&E/TECO wish to fully and litigation and all claims and damages as herein provided; and 630312.2 -2 - P.; (xxii) PG&E ii) PG&E West ,mpany; (xxiv) ission, Texas ompany; (xxvi) /; (xxviii) Teco tnd (xxx) PG&E and the directors, 'es of said entities ~ndants"). ated litigation as epresentatives for and corrected by C-A; City of San e 107th Judicial :ny and continues finally settle the WHEREAS, without admission of liability by or to any party, the C1. PG&E/TECO desire to avoid the vexation and uncertainties of litigation and fully the litigation, ancillary litigation, avoid further litigation, settle all claims and bt NOW, THEREFORE, FOR AND IN CONSIDERATION of the mul agreements herein contained, including the foregoing recitals which form an in Release and Settlement Agreement, and in consideration of the Agreed Settlem Ordinance Granting a Permit And Consent enacted by each of the Settling other good and valuable consideration, and in order to buy their respective pea¢ independent adequacy of all elements of such consideration being acknowled~ hereto, the parties hereby contract, covenant and agree as follows' , DEFINITIONS. The following terms are defined as follows when Agreement' a. "RELEASE AND SETTLEMENT AGREEMENT" shall me Final Release and Settlement Agreement and all referenced b. "CLASS CITIES" shall mean those cities that were given nc action after it was certified, have not opted out or have original opt out, and have not been severed, dismisse{ otherwise removed from the class by court order. C. "SETTLING CLASS CITIES" shall mean those Class Citie= given notice of the settlement, have agreed to the terms, consideration supporting the settlement, have agreed to ac( hereof, and have agreed to be bound by the Agreement. d."SETTLING DEFENDANTS" or"PG&E/TECO" shall mean all th as Defendants in the litigation, and the directors, officers, general an( joint ventures, employees, and representatives of said entities. 630312.2 -3- ~ss Plaintiffs and tnd finally resolve peace; ual promises and tegral part of this ;nt Sum and the Class Cities, and e, the receipt and ;ed by the parties used within this an this Full and Exhibits hereto. ,tice of this class rescinded their , nonsuited, or that have been conditions and ept the benefits e parties named limited partners, e, PIPELINE(S) shall mean the intrastate, interurban PG&E/T~ and natural gas liquids transmission pipelines and all th facilities, including, but not limited to, mains, spurs, laterals corrosion protection systems, city gates, and other rel~ PG&EFI-ECO owned, leased, operated and/or controlled, in (such as through a joint venture or partnership, for PG&EFFECO. The location of the Pipelines within the resp of the Settling Class Cities have been disclosed to the Settl directly and/or through Class Counsel, to the extent known, descriptions or other identification as may be required by ti , AGREED SETTLEMENT SLIM. PG&E/TECO agrees to pay by check Thirty Thousand Two Hundred Seventeen and 32/100 dollars ($3(2 is the full and complete amount that the Settling Defendants undersigned Settling Class City, as consideration for this Release Agreement and the other terms and conditions of the Class Settl( to the Court approved formula, as the Agreed Settlement Sum. ~ delivered to the Settling Class City through Class Counsel on or before f after final approval by the Court of this Release and Settlement Agreem¢ , CONSENT AND PERMIT ORDINANCE. The Settling Class consent, permit, authorize, and approve the past, current and cont use, maintenance, expansion, and operation of PG&E/TECO'. granted and expressed by the ordinance which each Settling Clas: enact and adopt, for a term of twenty-five years, in the same or sub form to Exhibit "A" attached hereto. , COURT COSTS. All costs of court in the litigation and ancillary litiga by the party incurring such costs. o DISMISSAL WITH PREJUDICE OF CLAIMS. The Settling Class C with prejudice all claims in this litigation and all claims against the Settl the ancillary lawsuits, as identified in Exhibit "B" attached hereto and reference herein, following the approval by the Court of the Releas. Agreement and receipt of the Agreed Settlement Sum in full as provided i~ 6. RELEASE a. Scope. It is the Settling Class Cities' intent to release all ( of whatsoever nature, or any other legal theory aris circumstances described above, against PG&E/TECO, --CO natural gas eir appurtenant meters, valves, ted facilities of whole or in part example), by ective city limits ing Class Cities ~y maps, written e City. the total sum of ,217.32), which will pay to the and Settlement ;ment, pursuant he check will be .ve business days Cities agree to nued presence, s Pipelines, as s City has or will stantially similar ,tion shall be paid ities shall dismiss .ng Defendants in incorporated by and Settlement Section 2 above. ;auses of action ng out of the and to release 630312 .2 -4 - bo C. PG&E/TECO from any and all liability and damages of an unknown, whether based on statute, ordinance, contract or t given herein is intended by the Settling Class Cities heret~ complete, comprehensive and final release and shall accordingly in its broadest sense as to PG&E/TECO; how~ Class Cities do not by this Release and Settlement Agreement rele~ any Settling Class City may possess or assert regarding francl~ against any of the following entities: the local distribution compa Southern Union Gas Company, a division of Southern Union Cc Union Company; the former Rio Grande Valley Gas Comp corporation, now known as Southern Union Company; Mercado ( and Entex, a division of NORAM Energy Corp.; or any of said e~ or assigns. Further, the Settling class Cities do not by this agre{ claims, if any, asserted by any such Settling Class City, representative or class member, against any person or entity othe Defendants named herein, in the case styled City of Pearland on B All Other Similarly Situated Cities v. Entex, Inc. et al.,_Cause No. 3 239th District Court in and for Brazoria County, Texas; or in the c Pharr et al. v. Rio Grande Valley Gas Company et al., Cause No. £ the 370th District Court in and for Hidalgo County, Texas. No Admission of Liability; Claims are Disputed and Uncertain kind, known or )rt. The release ) to constitute a be construed .=ver, the Settling .se any claims that ise fee payments ny now known as .mpany; Southern any, a Delaware las Services, Inc.; ~tities' successors :ment release any tither as a class than the Settling ~half of Itself and 131-JG-97, In the ase styled City of '~-4558-95-G-2, In The Releasing Parties further agree and acknowledge that there is con., iderable doubt, disagreement, dispute and controversy, with regard to th{; validity and/or viability of the Settling Class Cities' claims against the Setting Defendants and that the Settling Defendants have not and do not hereby make any admission as to the legal or equitable liability of the Settlinc. Defendants for any liability amount of damages or justification for legal relief The Releasing Parties further acknowledge and agree that there is doubt disagreement, uncertainty and confusion as to the amount of said liabilily,, if any. The purpose of this Release and Settlement Agreement is to 9nd the dispute about the value of the claims made, or which could have b{ ,en asserted, by the Settling Class against the Settling Defendants, once arid for all. Release of PG&E/TECO. The Class Plaintiffs, for themselves attd on behalf of the Settling Class Cities, and their agents, attorneys, representatives, e]nployees, elected and appointed officials, and all other related persons or entities ("R{.qeasing Parties"), hereby forever release, discharge, and acquit the Settling I)efendants, their successors, and assigns, of and from any and all past, present, demands, obligations, causes of action, contentions or legal th unknown, and any and all past, present, or future damage, ir or future claims, eories, known or tcluding, without 630312.2 -5- . limitation, loss of income, contractual fights or interests, statutor3 post-judgment interest, costs of court, punitive damages, attorne other damage or expense, accrued or unaccrued, whether now kn fixed or contingent, real or spurious, and whether any of the fore common law, contract, tort, equity, regulation, state or federal co city ordinance or any other applicable law, which the Releasing P~ may hereafter accrue or acquire, which are the subject of the litiga litigation, and/or which might have been asserted in any court commission or agency whatsoever, in connection with, arising oul related to the Pipelines, any acts, facts, transactions, occurrences, omissions asserted or which could have been asserted in the litigz litigation or arising for any reason out of any natural gas activities c with, or duty owed by the Settling Defendants to the Releasing Pa intention of the Settling class Cities to release any claims, if an) such Settling Class City, either as a class representative or class me person or entity other than the Settling Defendants named herein, City of Pearland on Behalf of Itself and All Other Similarly Situat{ Inc. et al., Cause No. 3131-JG-97, In the 239th District Court in County, Texas; or in the case styled City of Pharr et al. v. Rio G Company et al., Cause No. C-4558-95-G-2, In the 370th District Hidalgo County, Texas. It is the intention of the Releasing Pm claims and potential claims against the Settling Defendants, inclu. of example and not limitation: (1) trespassing/purpresturo up. (2) failure to obtain lawful consent for Pipelines within the c pay monies or underpaying monies due under street rent~ other city ordinances impacting Pipeline operations and P activities; (4) tortiously interfering with any Settling Class (2 franchise with its local gas distribution company; (5) alleg abetting third parties to violate any franchise agreements or (6) breach of any expired or existing franchise agreeme Settling Class City and any of the Settling Defendants; ~ related causes of action.. WARRANTY OF FULL AUTHORITY AND NO ASSIGNMENT Parties represent and warrant that they own and control 100% of the clair and have full authority to execute this Release and Settlement Agreeme Parties and Class Counsel represent, covenant, and warrant that none of ti herein have previously been conveyed, assigned, pledged, sold or transfer part, to any third party, and that they have full authority to release any ar damages, pre- or ~/s' fees, and any awn or unknown, going arise out of stitution, statute, trties now have or tion and ancillary forum, tribunal, of, or in any way ,epresentations or tion and ancillary ,r any relationship rties. It is not the ~, asserted by any mber, against any in the case styled ~d Cities v. Entex, and for Brazoria rande Valley Gas Court in and for ties to release all ting, only by way >n city property; :ity; (3) failure to ~1 ordinances or ~eline business ity's contract or edly aiding and city ordinances; ~t between any tnd (7) all other The Releasing ~s released herein at. The Releasing ~e claims released :ed, in whole or in td all claims. 630312.2 - 6- 8. AGREEMENT TO INDEMNIFY AND HOLD HARMLESS. The . 10. 11. agree to indemnify and hold harmless Settling Defendants from any third liability claims against Settling Defendants asserted by any defendant in m litigation initiated by or on behalf of any one or more of the Settling Clas or is derived from the matters released herein. The Releasing Partie Agreement release any claims that any Releasing Party may possess o franchise fee payments against Southern Union Company; Southern Uni a division of Southern Union Company; the former Rio Grande Valley G known as Southern Union Company; Mercado Gas Services, Inc. and/m of NORAM Energy Corp. It is further understood and agreed that no Set required to indemnify or hold harmless any Settling Defendant for or on Settling Class City. CONTRACTUAL TERMS. The terms of this Agreement are contrac recitals. GOVERNING LAW. This Agreement shall be governed and construed the laws of the State of Texas. ACKNOWLEDGMENT OF FULL UNDERSTANDING, OF REPRE AND CONSULTATION WITH COUNSEL, AND DISCLAIMER a, bo Sophisticated Parties Dealing at Arm's Length. The Sett Cities, as Releasing Parties, agree and acknowledg( negotiating and entering into this Release and Settlement Ac. Releasing Parties and their counsel have at all times bee with each other at arm's length, and all are knowledge sophisticated parties. Warranties of Understanding, Full Disclosure, and Represe~ and Opportunity. for Consultation with Counsel. The Releas hereto represent and warrant: (i) that they have read this R{ Settlement Agreement and fully understand it; (ii) that they represented in this litigation by Court appointed Class Counsel, a opportunity to consult with their independent City Attorney and/o~ counsel of their own choice; (iii) that they have agreed to be fi according to the terms of this Release and Settlement Agreerr Releasing Parties acknowledge that they have had the opp~ consult with Class Counsel and/or their City Attorney independent legal counsel regarding the entire conten' Release and Settlement Agreement, as well as 1 Releasing Parties >arty or derivative y present or future s Cities that arises ',s do not by this r assert regarding an Gas Company, as Company, now Entex, a division tling Class City is ~ehalf of any other tual and not mere n accordance with ~ENTATION BY )F RELIANCE. ing Class that in reement. ~ dealing able and ]tation by .ng Parties ~lease and have been nd had the with other tlly bound tent. The ~rtunity to or other Is of this he legal 630312.2 -7- consequences of this Release and Settlement Agree approving the execution of this Release and Settlement Agreemer Counsel, each of the Settling Class Cities is relying or judgment and each has been represented by competent Class Counsel and has further had the opportunity to cons own City Attorney or other legal counsel in this matter. C. Acknowledqment of No Other Promises or Aqreem Disclaimer of Reliance. Each of the Settling Class Cities warrants and does hereby authorize Class Counsel, as Ag~ Settling Class Cities, to state and represent that no pr agreement which is not herein expressed has been made the Settling Class Cities or their Counsel in exchange for enl and executing this Release and Settlement Agreement, and of the Settling Class Cities or their Counsel is relying statement or representation of any agent of or Counsel for ti' Defendants being released hereby. In making the decision t¢ by approving the execution of this Release and Settlement Agr, Class Counsel, the Settling Class Cities have relied on their own ~ and judgment and that of Class Counsel and/or their City Attom{ independent counsel, if any, and not in reliance upon any repr{ warranty, advice, or statement of any kind made by or on bet Settling Defendants or their Counsel, unless and except to the exter representation, warranty, advice, or statement is expressly contai Release and Settlement Agreement. 12. NO MODIFICATION. This Full and Final Release and Settlement A~ be modified unless any such modification is made in writing and signed hereto or their counsel. 13. BINDING UPON SUCCESSORS. This Full and Final Release and Sett] shall be binding on, inure to the benefit of, and be enforceable by, the S and their successors, heirs, assigns, trustees, administrators, and 1¢ representatives. 14. CONSTRUCTION. This Full and Final Release and Settlement Agreen mutual negotiations between and among the various parties and their Co shall not be construed more strictly against one party. Paragraph convenience only and shall not be used to interpret or construe the parag~ relate. ment. In tt by Class its own and able Jlt with its ~nts and ~xpressly nts of the omise or to any of :ering into that none Jpon any e Settling settle and :ement by anowledge :y or other :sentation, ~alf of the tt that such ned in this reement shall not by all the parties ement Agreement ~ttling Defendants gal and personal ~ent is the result of unsel, and as such captions are for · aph to which they 630312.2 -8- 15. MULTIPLE ORIGINALS. This Full and Final Release and Settlen be executed simultaneously in one or more duplicate originals, each c deemed an original. EXECUTED this the 6th day of June, 2000. The City of Schertz, Texas As a Settling Cla~ City and a Releasing Title: Cit M~ager ~ent Agreement may ,ne of which shall be Party 630312.2 -9- EXHIBIT "A" TO FULL & FINAL RELEASE AND SETTLEMENT A ORDINANCE 630312.2 -10- .GREEMENT . 630312 .2 EXHIBIT "B" TO FULL & FINAL RELEASE AND SETTLEMENT A LIST OF ANCILLARY LAWSUITS IN WHICH ALL CLAIMS AGA DEFENDANTS WILL BE DISMISSED WITH PREJUDIC Cause No. C-4558-95-G-3, City of Alton and City of Donna vs. Rio Gram PG&E Gas Transmission, Texas Corporation f/Ida Valero Ener9y Company f/k/a Valero Transmission Company, PGaE Texas Natur~ f/k/a Valero Natural Gas Company, PG&E Energy Trading Holding Valero Gas Marketinq Company f/k/a Reata Industrial Gas Compa Pipeline, L.P. £/k/a Valero Transmission, L.P., and PG&E Reata E Reata Industrial Gas, L.P.; In the 370th Judicial District Court, Hidalg .GREEMENT [NST PG&E E le Valley Gas Co.~ Corporation, VT ti Gas Company. s Company l/Ida ny, PG&E Texas nergy, L.P. f/k/a o County, Texas THE STATE OF TEXAS, PUBLISHER'S AFFIDAVIT County of Guadalupe Before me, the undersigned authority, on this date personally appeared Ninneman, known to me, who, being by me duly sworn, on her oath dep that she is the Managing Editor of The Seguin Gazette-Enterprise, a ne~ published in said county; that a copy of the within and foregoing notice ~ said newspaper 2 times before the return day named therein, such publ on the following dates: Gazette Enterprise PennySaver June 18, 2000 June 22, 2000 and a newspaper copy of which is hereto attached. Kathie oses and says Yspaper ~as published in cations being Sworn to and subscribed before me this day of June A.D., 2 000. Notary Public, Guadalu e County, Texas TELEPHONE: 210/224-5575 FACSIMILE: 210/270-7205 WRITER'S INTERNET ADDRESS: mspain@fulbri§ht.com WRITER'S DIRECT DIAL NUMBER: :~ I 0/E70-7184 FULBRIGHT <~ JAWORSKI L.L.P. A REGISTERED LIMITED LIABILITY PARTNERSHIP 300 CONVENT ,~TREET, ,.~UITE 2200 SAN ANTONIO, TEXAS 78205 June 20, 2000 Re: PG&E Settlement Mr. Kerry R. Sweatt City of Schertz 1400 Schertz Parkway P.O. Drawer 1 Schertz, Texas 78154 B, Dear Kerry: I enclose a check, payable to the City of Schertz, in the amount of $30,~ of the City's settlement from the PG&E litigation. I also enclose a letter from So~ original and one copy) enclosing the acceptance of the City's settlement. The filed by Norma with the original Ordinance in the City's records, and Paul Andre Wallace) has asked that the copy be stamped with a date receipt and returned to [ envelope. Very tm!y yo~s, Michael L. Spain MLS/mjw Enclosures 635960.1 HOUSTON WASHINGTON. D.C. AUSTIN SAN ANTO N I0 DALLAS NEW YORK LOS ANGELES M I N N EAPOLIS LONDON HONG KONG MESSENGER ~. 17.32 in payment ~les & Wallace (an original should be ws (with Soules & tim in the enclosed Fulbri~ht (50) 6/lq/00 3'39' PAGE 2/2 RightEAX TEL£DNONE: F. IO/22~-557 5 ~'ACS!M~ LEi 210/ 270-7 205 WRITER'S INTERNET ADDRESS: mS p ~in ~fu I b~ i ~h t.com WRITERIS ~IRECT ~IAL NUMBER: FULBRIGHT & JAWORSKI L.L.P. A ~::::~EOISTERED L_IM~TED L_iAEiILITY ~DARTNE~5~I~D 3,00 CONVENT STREET, SUITE 2200 SAN ANTONIO, TEXAS 78~05 June 14, 2000 Re' City of San Benito Lawsuit: City of Schertz Mr. Paul D. Andrews Soules & Wallace Frost Bank Tower, Suite 1500 100 West Houston Street San Antonio, Texas 78205 BY Dear Paul' As I indicated on my voice mail to you, I enclose a certified ordinance of th and a complete and executed Full and Final Release and Settlement Agreement re of San Benito/PG&E class litigation, all on behalf of the City of Schertz. Very truly yours, original signed by Michael L. Slmi Michael L. Spain h/LS/mjw Enclosures cc: Kerry R. Sweatt (City Manager, City of Schertz) (w/o enclosures) ~lO LISTON WASMINOTON, D.C. ALI ST ~ N SAN ANTONIO DALLAS NEW YORK LOS ANGELES M ! N N EADO L~ S I-lONG KONG MESSENGER City of Schertz Lating to the City 6352'74.1 PAUL D. ANDREWS KEITH M. BAKER PATRICIA ANN BATH * RICHARD M. BUTLER HERBERT GORDON DAVIS R, RENE ESCOBEDO WAYNE I. FAGAN JERRY J. FULTON PHIL STEVEN KOSUB * B. MILLS LATHAM ELIZABETH J. LINDELL JAMES E. MONTGOMERY SARA MURRAY SUSAN S. PATTERSON ROBINSON C. RAMSEY ~:° LAW OFFICES SOULES & WALLACE ATTO RN EYS - AT- LAW A PROFESSIONAL CORPORATION FROST BANK TOWER 1OO W. HOUSTON STREET, SUITE 15OO SAN ANTONIO, TEXAS 78205-1457 (210) 224-9144 TELEFAX: (210) 224-7073 WRITER'S DIRECT DIAL NUMBER: (210) 299-5474 June 16, 2000 City Secretary City of Schertz P. O. Drawer I Schertz, Texas 78154-0890 Re: Ordinance No. M-12, enacted pursuant to the settlement of the C1 case pending as Cause No. 96-12-7404 in the 107th Judicial Dis' of Cameron County, Texas Dear City Secretary' Enclosed for filing in the records of the City is the Grantees' form ofaccep referenced Ordinance No. M-12, duly enacted on June 6, 2000. This letter signatures of the duly authorized representatives of the Grantee constitutes ( acceptance of the above referenced Ordinance pursuant to Section 15 thereof, ant as of the 15th day of June, 2000. Sincerely, 'Paul D. Andrews'''.`. ..... '~' Attorney for Grantee, PG&E Gas Transmission, Texas C PG&E Gas Transmission, Teco, In PG&E Energy Trading - Gas Corp. Wholly Owned Subsidiary Corpor~ Owned Subsidiary General and Lirr PDA/rb Enclosure A:\00147556.WPD AUSTIN, TEXAS OFFICE: 925-B CAPITAL OF TEXAS HIGHWAY, SUITE 245 AUSTIN, TEXAS 78746 (512) 328-5511 TELEFAX (512) 327-4105 CORRESPONDENT OFFICE: LONDON, ENGLAND NATIONAL BOARD OF TRIAL ADVOCACY TEXAS BOARD OF LEGAL SPECIALIZATION BOARD CERTIFIED ADMINISTRATIVE LAW BOARD CERTIFIED CIVIL APPELLATE LAW BOARD CERTIFIED CIVIL TRIAL LAW BOARD CERTIFIED COMMERCIAL AND RESIDENTIAL REAL ESTATE LAW * BOARD CERTI: PROBA ° BOARD CERTI: ~ BOARD CERTIt TRIAL s LICENSED IN MARC J. SCHNALL * BRAD L. SKLENCAR S LUTHER H. SOULES III BRUCE K. SPINDLER WILLIAM T. SULLIVAN CHRISTOPHER J. TARRILLION THOMAS H. VEITCH * JAMES P. WALLACE * OF COUNSEL: LUIS R. GARCIA (1919-1996) ROBERT L. ESCHENBURG II ass Action Irict Court tance of the above and the attached ;rantee's form of shall be effective c. and ~ration and their ttions and Wholly ited Partnerships. ~IED ESTATE PLANNING AND FE LAW :lED FAMILY LAW IED PERSONAL INJURY LAW WASHINGTON, D.C. Schertz Ordinance No. M-12 and the grants, permits, consent, dutie obligations and privileges thereto were accepted by the undersigned corpora partnerships, collectively as "Grantee,"effective on and as of the 15th day of Jm powers, rights, ,tions and limited 2000. PG&E Gas Transmission, Texas Corporation; PG&E Texas Natural Gas Company; PG&E Texas Pipeline Company; PG&E Texas Field Services Company; PG&E Texas Gas Storage Company; PG&E Hydrocarbons Company; PG&E Texas Hub Services Company; PG&E Texas Management Company; PG&E Energy Trading Holdings Corporation; PG&E West Texas Pipeline Company; PG&E Gas Transmission Teco, Inc.; Teco Industrial Gas Company; Teco Gas Marketing Company; Teco Gas Processing Company; Teco Gas Services Company; Teco Gas Gathering Company; PG&E Texas Pipeline, L.P., by its General Partner, PG&E Texas Pipeline Company; PG&E Hydrocarbons, L.P., by its General Partner, PG&E Hydrocarbons Company; PG&E Texas Gas Partners, L.P., by its General Partner, PG&E Texas Natural Gas Company; PG&E Texas Management Partnership, L.P., by its General Partne PG&E Texas Natural Gas Company; PG&E-Tex, L.P., by its General Partner, PG&E Texas Natural Gas Company; PG&E NGL Marketing, L.P., by its General Partner, PG&E Hydrocarbons Company; PG&E Texas LDC, L.P., by its General Partner, PG&E Texas Pipeline Company; and PG&E Texas VGM, L.P., by its General Partner, PG&E Energy Trading Holdings Corporation; By' Thomas B. King, a President of each of the corporations named above r~ ACKNOWLEDGEMENT (Corporation) STATE OF TEXAS COUNTY OF HARRIS This instrument was acknowledged before me on the ~t~'~ day Thomas B. King, President and Chief Operating Officer of (i) PG&E Texas Corporation; (ii) PG&E Hydrocarbons Company; (iii) PG&E T{ Company; (iv) PG&E Texas Gas Storage Company; (v) PG&E T~ Company; (vi) PG&E Texas Management Company; (vii) PG&E ~ Company; (viii) PG&E Texas Pipeline Company; (ix) PG&E Gas Trans (x) Teco Gas Gathering Company; (xi) Teco Gas Marketing Compm Processing Company; (xiii) Teco Gas Services Company; and (xiv) ~I Company, on behalf of each such corporation. ,, Not~ Public ~ and"f{ Texas My commission expire C :\TEMPhKeller_Notary_Acknowledgement.doc of June, 2000. by Gas Transmission, :xas Field Services xas Hub Sen, ices 'exas Natural Gas mission Teco, Inc.; ly; (xii) Teco Gas eco Industrial Gas ,r Harris County, S: ACKNOWLEDGEMENT (Limited Partnership) STATE OF TEXAS COUNTY OF HARRIS This instrument was acknowledged before me on the /~qday Thomas B. King, President and Chief Operating Officer of (i) PG Company, as sole general parmer of PG&E Hydrocarbons, L.P. and PG& L.P., on behalf of each such limited parmership; (ii) PG&E Texas Namr. sole general partner of PG&E Texas Gas Parmers, L.P.; PG&E T Partnership, L.P.; and PG&E- Tex, L.P.; on behalf of each such li (iii) PG&E Texas Pipeline Company, as sole general parmer of PG&E ~ and PG&E Texas LDC, L.P., on behalf of each such limited partnersh venturer of PG&E West Texas Pipeline Company, on behalf of such (iv) PG&E Gas Transmission Teco, Inc., as co-joint venturer of PG&E ~3 Company, on behalf of such joint venture. I1~"('~1¢~ ~- MY COMMISSION EXPIRES il %5:k;( ~,~'t,;-" February 17, 2003 !1 C :\TEMP\Keller_Notary_Acknowledgement.doc of June, 2000, by &E Hydrocarbons E NGL Marketing, 1 Gas Company, as exas Management mited parmership: exas Pipeline, L.P. ip, and as co-joint joint venture; and ~est Texas Pipeline / ' ,/ / . Notaw Publi/'~n and f( ,r Hams County, Texas My commission expire s' PG&E Texas Energy Company; PG&E Energy Trading - Gas Corporation; PG&E Reata Energy, L.P., by its General Partner, PG&E Texas Energy Company; PG&E Rivercity Energy, L.P., by its General Partner, PG&E Texas Energy Company; and PG&E Texas Industrial Energy, L.P., by its General Par PG&E Texas Energy Company i~ell E. Madd'ox, as /~~r~e$ident of PG&E Texas Energy Company and v President of PG&E Energy Trading - Gas Corporati tner, on ACKNOWLEDGEMENT (Limited Partnership) STATE OF TEXAS COUNTY OF HARRIS This instrument was acknowledged before me on the/~{~' day Lyndell E. Maddox, President and Chief Executive Officer of (i) PG Company, as sole general parmer of PG&E Reata Energy, L.P.; PG&E L.P., and PG&E Texas Industrial Energy, L.P.; on behalf of each such 1 and (ii) PG&E Energy Trading Holdings Corporation, as sole general pa~ VGM, L.P., on behalf of such limited parmership. ~.- il~-i:,'~ ~ MY COMMISSION EXPIRES il !1 z~;::. .... ~:~;.- February 17 2(X)3 I! of June, 2000, by &E Texas Energy Rivercity Energy, imited parmership; ~er of PG&E Texas NOtary Public in and ~qr Hams Coun .ty, Texas / My commission expireI: C:WEMP\Keller_Notary_Acknowledgement.doc ACKNOWLEDGEMENT (Corporation) STATE OF TEXAS COUNTY OF HARRIS This instrument was acknowledged before me on the l~;~Xlday Lyndell E. Maddox, President and Chief Executive Officer of (i) PG Company; (ii) PG&E Energy Trading Holdings Corporation; and (iii) PG, -Gas Corporation, on behalf of each such corporation. Notary Public In and fi Texas My commission expire C :",TEM P\Keller_Notary_Acknowledgement.doc of June, 2000, by .&E Texas Energy kE Energy Trading U/l '/"~---"' ", ~r Harris County, SO VT Company By: Bruce R'~. Wort~ ~ hington ~ Attorney-In-Fact ACKNOWLEDGEMENT (Corporation) STATE OF CALIFORNIA COUNTY OF SAN FRANCISCO This instrument was acknowledged before me on the 13th 2000 by Bruce R. Worthington, Attorney-In-Fact of VT Company, such corporation. ~ ~d~ Comm. ,1228~70 ~ UJ[=~~~/ NOTARYPUBLIC-CALIFORN~A ~ ~ ~<~:~'~/ City & County of San F~aRc;SCO day of June on behalf of Notary Public in and for the C~ Francisco, State of California My commission expires' July 30, )unty of San 2003